Conventional wisdom is that computer companies operate on very small margins and are unwilling to bargain. This is a myth.

As relatively new organization, Dogwood Initiative operates with a small budget. Yet our staff is sophisticated -- and growing quickly. We need to squeeze every penny from our limited technology budgets.

Our entry into bargaining for computer hardware began out of desperation. The euphoria of our first successful technology grant quickly wore off when we tried to purchase computers. Taxes and shipping charges (which we hadnt budgeted for) ate into our budget. The initial quotes we received were higher than we anticipated, jeopardizing our ability to purchase our first, long-awaited (and much anticipated) laptop computer. As result of hard bargaining, to our surprise, we saved approximately $1,300. Since then we have saved thousands of dollars and acquired significantly more technology horsepower then we thought possible.

Here are some tips:

Tip 1: Be audaciousbegin haggling

You'll never get a deal if you don't ask. The hardest part for me, and many North Americans, is to begin to bargain. Except for cars, we are so used paying the sticker price, we don't try to haggle. What Ive learned is that everything is negotiable, but you need to begin the negotiation process. It can be as simple as saying, is that your best offer or can you do better. Remember, the worst that can happen is the other side can say no.

Tip 2: Know what you want

As negotiating guru Jim Thomas says, increase your aspiration level. Don't set your initial request too near your goal. Begin acting on your higher aspirations through your opening offer.

To set your envelope you need to know the essential components you need, what you'd like to have if you can afford it, and what is non-essential or dispensable. For our recent desktop purchase, we knew that large hard drive was essential, a CD burner was desirable but not essential, and a floppy drive was disposable. Technical consultants like ONE/Northwest can help you figure out what you need, and what you don't.

Tip 3: Shop aroundget quotes

After you've established what you need, would like, and don't need, get some price benchmarks. You do this through research on the web as well as soliciting quotes. Recently, we solicited written quotes from Canadian computer retailer, Dell and a local computer builder. Ask for the price as a package and for each individual component including desired but non-essential components and those that are dispensable. Always request the quote indicate the discount available for purchasing in volume (this helps you figure out their true cost). Do not forget to have them itemize taxes, shipping, delivery and warranty prices as well. Get them to commit to a delivery date.

With Dell, keep researchingnew offers occur nearly everyday on the web or in the newspaper. Using the component prices they have quoted, you can subtract from or add to these advertised prices to get a better deal. By doing this we saved about $450 and got upgraded components on our last purchase. One good source of Dell deals is http://www.gotapex.com. TechFoundation (a Boston-based nonprofit tech assistance provider) has pre-negotiated a 10-15% discount on Dell equipment, which any nonprofit can take advantage of at http://www.dell.com/epp/techfoundation/. An excellent source of price comparisons from multiple online vendors is PriceGrabber (http://www.pricegrabber.com).

Tip 4: Build relationshipsor pretend to

Generally, computer retailers want repeat customers. This means they are usually prepared to sacrifice some profit to build longer-term relationships. Exploit this desire! Always remind them that this is only one of a number of purchases your organization will make over the next few years.

This plays out differently with different retailers. With local vendors, indicate you'd much rather buy local, but as a nonprofit you're very price sensitive and worried about their ability to provide service over time. With larger retailers indicate that stability is an advantage, but there is lots of competition.

Remember, you are building a relationship with both the company and the salesperson. Many work on commission and rely on repeat business.

Tip 5: Use competitors prices

Written quotes help you play retailers off against the other. I have succeeded in getting Dell to drop their quotes on both desktops and notebooks to well below advertised prices by informing them of a lower quote from Gateway or a local retailer. I said, I have been pleased with our previous Dell purchases, and would prefer to deal with one vendor and Dells superior product, but as a cash-strapped non-profit Ill have to go with the lowest price.

Tip 5: Use your nonprofit status

Continually reinforce that you are a non-profit agency operating on low budget. With some sales agents, especially those that support your mission, this seems to encourage them to go the extra yard. If the sales agent doesnt seem sympathetic, call another agent.

Once you get a good agent, get as much direct contact information as possible so you can establish a relationship they want to maintain.

Tip 6: Dicker on components

Once the core components of the package are dealt with, wrangle about everything elsethis is where your desired and disposable components, taxes and shipping come in. Negotiating guru Jim Thomas calls this nibbling at the end. If is your operative word. Say things like, that would work, if you could throw in______. I was able to get Dell to throw in Windows XP, a leather briefcase, an extended warranty, free shipping and a monitor stand all essentially for free.

When nibbling, research is importantestimate the hard cost of the item. For example, extending the warranty may not cost a company much if it does it in house, but it can be expensive to outsource. I have had some success getting companies to throw in free software, security packages, and extra RAM and colleagues have gotten a free wireless mouse and keyboards as nibbles.

Tip 7: Haggle some more

When you are almost embarrassed to keep nibblingask for one more thing. Westerners are usually embarrassed to keep askingdont be, the company will let you know if you have reached the limit. Recently, I have been asking a retail computer store for a discount of the sticker price on every purchase. They immediately offer a 7-30% discount that I would have never gotten if I hadnt asked.

Tip 8: Walk away

Salespeople, especially those on commission, want to close sales. If they have invested significant time in the back and forth they often will be more willing to haggle after you have let them sweat for awhile. If you think they will come down more, tell them, I want to (1) think about it or (2) shop around. Often they will respond with a another inducement.

Tip 9: Hold them accountable

Document everything. If the company doesnt perform exactly as promised, ask for additional benefits. We keep detailed notes of all our interactions with computer service providers and this has proven very useful in getting additional concessions.

If the shipment is late, service is poor, or components dont work or are missing, demand something in return. Last year when my laptop wasnt replaced by the promised date (note: dont let anyone drop your laptop in the ocean), I wrote to the CEO documenting all our problems. Ultimately, the company agreed to provide me with a more powerful replacment machine, double my memory and RAM and throw extra peripherals. The replacement was worth $4,700 and I only paid $2,500 for the original computer.

Tip 10: Be patientbut time is money

Bargaining takes time. Be patientknow your limitations and set boundaries. Always ask yourself: Are the potential savings worth the time and effort needed to save money?

Your organization has to evaluate each transaction to determine the relative benefits. Sometimes it may be worth spending the extra money to get equipment quickly.